Recent years have been challenging for landlords. The introduction of new tax laws and regulations has reduced potential profits. Then, coronavirus happened, which caused many renters to fall into arrears.
For many landlords, the UK property market has lost its lustre. So which other passive income areas are they investing in?
A Challenging Landscape for Landlords
A series of tax laws and regulations have made things difficult for many landlords. Tax relief on buy-to-let mortgages is gone. Additionally, changes in buy-to-let Capital Gains rates for landlords have hit profits further.
On top of all this were the pandemic and the eviction moratorium. In some cases, landlords lost their rental income and were unable to remove the tenants legally.
These difficulties have forced many landlords to look at other passive income investments.
Which Passive Income Investments are Interesting For Landlords?
For landlords looking for different opportunities in UK property, there are other forms of passive investment.
#1. Crowdfunding Platforms
Crowdfunding and peer-to-peer lending are interesting products for anyone looking to invest. There are some crowdfunding platforms on the market which allow you to invest from a relatively low entry level. This is a great way to ‘test the water’ with a new investment option, and also allows you to reduce any risk involved.
#2. Stocks and Shares
Equities have recovered well after the pandemic crash. While the FTSE 100 has yet to get back to pre-pandemic levels, the S&P 500 has had an excellent 18 months, thanks to tech stocks. The right investments produce great returns, but picking the best stocks is not always easy.
#3. Property Bonds
Property Bonds offer landlords another attractive passive income opportunity. Property bonds, sometimes called property investment bonds, are issued by developers or construction firms to raise capital.
Typically, bonds pay out interest during the loan period, with the loan principal returned upon completion.
#4. Redbrick’s Investment Opportunity For Landlords
Redbrick’s loan note opportunity offers landlords and other investors an opportunity to invest in property development with high annual returns. The existing team has over 35 years of property investment experience with a strong track record. Redbrick is owned by Property Forum’s CEO Nicholas Wallwork.
With over £20m already returned to investors already, these loans offer an excellent option for landlords who are tired of the increasingly hostile tax and regulatory changes.
Conclusion
For many landlords, renting property is losing its appeal. A series of tax and regulatory changes have made it more challenging and less profitable. With homes appreciating at record rates, many investors are choosing to leave the rental sector and seek new opportunities for their capital.
There are opportunities out there like crowdfunding investment and stocks and shares, each of which can provide returns based on the right project or sector. However, for many landlords, Redbrick’s loan note opportunity represents an excellent way to access high, passive annual returns with a team that has a flawless track record. This investment product is built by landlords for landlords. To find out more, click here today.